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ServiceNow Exam CIS-HAM Topic 2 Question 46 Discussion

Actual exam question for ServiceNow's CIS-HAM exam
Question #: 46
Topic #: 2
[All CIS-HAM Questions]

Taxes paid at the time of purchase are what type of cost?

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Suggested Answer: A

According to the ServiceNow Hardware Asset Management documentation, original cost is the amount paid to acquire an asset, including any taxes, fees, shipping, installation, or other expenses directly related to the purchase. Original cost is used to calculate depreciation and amortization of an asset over its useful life. The other options are not the type of cost that taxes paid at the time of purchase are. Operating expense, operating cost, and capital expense are different ways of classifying the costs of using and maintaining an asset after it is purchased.


by Tracey at Sep 16, 2024, 01:46 AM

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Harrison
10 months ago
But operating cost includes expenses incurred in day-to-day operations, like taxes.
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Valentine
10 months ago
I think it's original cost because it's part of the initial purchase price.
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Harrison
11 months ago
Taxes paid at the time of purchase are considered as operating cost.
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Lettie
11 months ago
D. Capital Expense, no doubt about it. I bet the tax man would love to see us all treat it as an operating cost!
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Broderick
10 months ago
D. Capital Expense, no doubt about it. I bet the tax man would love to see us all treat it as an operating cost!
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Alpha
10 months ago
D) Capital Expense
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Diane
10 months ago
C) Operating Cost
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Grover
10 months ago
B) Operating Expense
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Edelmira
10 months ago
A) Original Cost
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Melda
11 months ago
Operating expense? Nah, that's for the day-to-day stuff. Taxes are more like a one-time thing, so it's gotta be a capital expense.
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Veta
10 months ago
I see your point, but I still think it's a capital expense because it's a one-time cost for the asset.
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Emeline
10 months ago
Actually, I think it's an original cost because it's directly related to the purchase.
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Andra
10 months ago
No way, I'm pretty sure it's an operating cost. It's part of the cost of doing business.
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Jamika
11 months ago
I think taxes paid at the time of purchase are considered a capital expense.
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Von
11 months ago
Hmm, taxes at the time of purchase? That's gotta be a capital expense, right? I mean, who wants to pay for that out of their pocket money?
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Raymon
11 months ago
Yeah, I agree. It's not something you want to pay for out of your own pocket.
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Elza
11 months ago
I think you're right, it's definitely a capital expense.
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